This is information I received from our company's loan officer, Shawn Bowling, which I think has some great information in it. Shawn's website is www.shawnbowling.com and he has an online application there if you are an interested buyer!
WHY BUY A HOUSE NOW?
- First-time homebuyers can take advantage of the $8000 tax credit! If you have NOT owned a home in the past 3 years, you're a first-time homebuyer. The credit is 10% of the purchase price or $8000, whichever is less.
Example: You bought a home by 12-31-09 and the purchase price was $100k. The tax credit you'd qualify for would be $8000-($8000 is less than 10% or the purchase price). When you do your taxes next January, if you owed zero and your refund was zero, you would receive a check for $8000! The catch is, you must STAY in the home you purchased for 3 years or the $8000 must be paid back upon the sale of that home.
•· Aggressive loan programs are still available! FHA: requires a 3.5% down payment, which can be a gift from a family member. FHA has loan limits by county. Simply Google FHA loan limits and you will get the website where you can punch in your county and get the loan limit. FHA loans can also be approved with HIGHER debt-to-income ratios if the borrower has high credit scores and reserves. Borrowers also have access to the FHA 203k Streamline purchase, which enables them to obtain up to $35,000-(with a 10% contingency) ON TOP OF the loan amount to "update" the property-(no STRUCTURAL repairs allowed). They can even use this program to buy new appliances! USDA: offers a buyer with 100% financing and NO monthly PMI! Properties must be located in Eligible areas to qualify-(hence the name...Rural Development). There is also an income maximum as well. Click on this link below to go to the USDA Eligibility website. It's very self-explanatory, but you can call me if you need help navigating the site. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do VA: offers Veterans 100% financing with NO monthly PMI! Loan amounts up $417,000 and there are NO income restrictions! Conventional: minimum down payment required is 5%. 20% down = NO PMI!
•· RATES ARE STILL LOW! Rates are still in the mid 5's. These LOW rates will NOT last forever. If someone is going to buy, they need to do so NOW! Rates haven't been this low in years and buyers CAN receive FREE money through the tax credit for being a first-time homebuyer, which can be used to payoff other debt, fix up the home or sock into the bank!
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